National Grid 2008 Annual Report Download - page 692

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 13465
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 165
Description: EXHIBIT 15.1
0/3361.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/361/3*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 13465
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 165 Description: EXHIBIT 15.1
0/3361.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/361/3*
Table of Contents
Annual Report and Accounts 2007/08
173
38. National Grid Gas plc and Niagara Mohawk Power Corporation additional disclosures
The following condensed consolidating financial information, comprising income statements, balance sheets and cash flow
statements, is given in respect of National Grid Gas plc (Subsidiary guarantor), which became joint full and unconditional
guarantor on 11 May 2004 with National Grid plc (Parent guarantor) of the 6.625% Guaranteed Notes due 2018 issued in
June 1998 by British Transco Finance Inc. (then known as British Gas Finance Inc.) (issuer of notes). Condensed consolidatin
g
financial information is also provided in respect of Niagara Mohawk Power Corporation as a result of National Grid plc’s
guarantee (dated 29 October 2007) of Niagara Mohawk’s 3.6% and 3.9% issued preferred shares. National Grid Gas plc,
British Transco Finance Inc., and Niagara Mohawk Power Corporation are wholly-owned subsidiaries of National Grid plc.
The following financial information for National Grid plc, National Grid Gas plc, British Transco Finance Inc., and Niagara
Mohawk Power Corporation on a condensed consolidating basis is intended to provide investors with meaningful and
comparable financial information and is provided pursuant to Rule 3-10 of Regulation S-X in lieu of the separate financial
statements of each subsidiary issuer of public debt securities.
This parent company-only financial information should be read in conjunction with the Company’s financial statements and
footnotes presented in our 2007/08 Annual Report and Accounts.
Summary income statements are presented, on a consolidating basis, for the three years ended 31 March 2008. Summary
income statements of National Grid plc and National Grid Gas plc are presented under IFRS measurement principles, as
modified by the inclusion of the results of subsidiary undertakings on the basis of equity accounting principles.
The summary balance sheets of National Grid plc and National Grid Gas plc include the investments in subsidiaries recorded
under the equity method for the purposes of presenting condensed consolidating financial information under IFRS. The IFRS
summary balance sheets present these investments within ‘Investments’.
The consolidation adjustments column includes the necessary amounts to eliminate the inter-company balances and
transactions between National Grid plc, National Grid Gas plc, British Transco Finance Inc., Niagara Mohawk Power
Corporation, and other subsidiaries.
Summary income statement for the year ended 31 March 2008 – IFRS
Parent Subsidiary
guarantor Issuer of notes guarantor
Niagara
National Mohawk British National National
Grid Power Transco Grid Gas Other Consolidation Grid
plc Corporation Finance Inc. plc subsidiaries adjustments consolidated
£m £m £m £m £m £m £m
Revenue
–
2,108
–
2,459 7,104
(
248
)
11,423
Other operating income – – – 8 67 – 75
O
p
eratin
g
costs
De
p
reciation and amortisation
–
(
101
)
–
(
432
)
(
461
)
–
(
994
)
Pa
y
roll costs
–
(
201
)
–
(
226
)
(
752
)
–
(
1,179
)
Purchases of electricity – (609) – – (744) – (1,353)
Purchases of
g
as
–
(
297
)
–
(
110
)
(
1,604
)
–
(
2,011
)
Rates and
p
ro
p
ert
y
taxes
–
(
93
)
–
(
227
)
(
288
)
–
(
608
)
Electricit
y
transmission services scheme direct costs
–
–
–
–
(
574
)
–
(
574
)
Payments to Scottish electricity transmission
network owners
–
–
–
–
(
226
)
–
(
226
)
Other o
p
eratin
g
char
g
es
–
(
248
)
–
(
514
)
(
1,075
)
248
(
1,589
)
–
(
1,549
)
–
(
1,509
)
(
5,724
)
248
(
8,534
)
O
p
eratin
g
p
rofit
–
559
–
958 1,447
–
2,964
Net finance costs
(
116
)
(
116
)
–
(
298
)
(
246
)
–
(
776
)
Dividends receivable
–
–
–
–
500
(
500
)
–
Interest in equity accounted affiliates 1,711 – – (27) (7) (1,673) 4
Profit before taxation 1,595 443
–
633 1,694
(
2,173
)
2,192
Taxation (14) (194) – (141) (262) – (611)
Profit for the
y
ear from continuin
g
o
p
erations 1,581 249
–
492 1,432
(
2,173
)
1,581
Profit for the
y
ear from discontinued o
p
erations 1,618
–
–
3 1,615
(
1,618
)
1,618
Profit for the
y
ear 3,199 249
–
(i)
495 3,047
(
3,791
)
3,199
Attributable to:
E
q
uit
y
shareholders 3,196 249
–
495 3,044
(
3,788
)
3,196
Minorit
y
interests 3
–
–
–
3
(
3
)
3
3,199 249
–
(i)
495 3,047
(
3,791
)
3,199
(i) Profit for the year for British Transco Finance Inc. is £nil as interest payable to external bond holders is offset by interest receivable on loans to National Grid Gas plc.